Long Insurance Services of Kernersville, NC


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All posts by Monte Long

Auto Deductible

How to Choose an Auto Deductible

Auto DeductibleThere are many choices you need to make when it comes to choosing the right auto insurance. When it comes to customizing your policy, one of the biggest decisions is what deductible amount you will choose.

WHAT IS A DEDUCTIBLE IN AUTO INSURANCE?

Your deductible is the amount of money you will have to pay toward fixing or repairing your car before your insurance kicks in. Deductibles typically only apply to collision and comprehensive coverage. (There may be other cases where you could have a deductible – for example, uninsured motorist property damage – so ask your agent about all coverages with deductibles.)

Here’s an example scenario: Let’s say you’re involved in an accident and the repair estimate from the auto repair shop is $2,000. If you have a $500 deductible, you will be responsible for paying $500 and then your insurance will take care of the remaining $1,500.

Most people choose a deductible between $100 and $1,000, although they could possibly be as low as $0 or as high as $10,000, depending on the coverage and applicable state laws. Your agent can help  explain your options so you can pick an amount that’s comfortable for you.

DOES ERIE INSURANCE OFFER A DIMINISHING DEDUCTIBLE?

Yep, we have that! Read more about how the Erie Auto Plus* endorsement can help with a diminishing deductible (and a lot more) for about $30 more per year.

DO I ALWAYS HAVE TO PAY MY DEDUCTIBLE AFTER AN ACCIDENT?

If you’re deemed at fault for an accident, you typically pay the deductible under your own policy. If another person damages your vehicle and they are deemed at fault, their insurance would typically pay for your damage in its entirety. In that case, you wouldn’t be responsible for paying the deductible under your own policy.

HOW DOES YOUR DEDUCTIBLE AFFECT YOUR PREMIUM?

Generally, the higher your deductible, the lower your insurance premium (which is just a fancy word for price). The lower your deductible, the more you will typically pay for your insurance premium.

Related: What Determines the Price of My Auto Insurance?

Not sure what to pick? No worries – your ERIE agent is here to help.

Your agent can offer you multiple quotes with different deductibles. They can also explain how changing your deductible can affect your annual premium – or show you the cost savings between different options over multiple years. Ultimately, they want you to fully understand your options and feel confident about your decision.

Let’s take a look at the basics.

HOW TO CHOOSE YOUR DEDUCTIBLE

It’s all about your budget – and your comfort level with risk. Here are some things to consider about deductibles when you talk with your agent:

  1. Your budget: Ask yourself: What’s the amount of money I would be comfortable paying if I need to repair my vehicle? The lower your deductible, the less you will have to pay out of pocket if you have to file a claim, but your overall car insurance premium will be higher.It works the opposite way, as well.  If you have a high deductible, you will have a lower car insurance premium – but you’ll pay more out of pocket if you file a claim. This decision comes down to personal preference and what you can afford within your current budget.
  2. Drive time: Think about the amount of time you spend driving on a daily or weekly basis. If you’re in your car a lot – or driving in more accident-prone areas – you might be exposed to more risk than someone who drives less.
  3. Value of your vehicle: The more expensive the vehicle, the more it costs to insure. In that scenario, a high deductible could help you save on your premium. However, if you have a car loan, some lenders stipulate that your deductible should not exceed a certain amount. Check with your lender to be sure.

See also: Find Out the One Insurance Add-On Every New Car Needs

One final tip: Whatever deductible you choose, it’s smart to have that amount of cash on hand in your emergency fund. That way you’re financially prepared if you end up having to file a claim.

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Lending My Car

Am I Covered When I Lend My Car to Friends or Family?

If you own a car, chances are you’ve let a friend or family member borrow it at least once.

After all, there are plenty of reasons to hand over the keys. Maybe you needed a relative to pick up your kids from school. Or you’re helping someone get to work after their car broke down.

But did you know that in the event of an accident… it’s your auto insurance policy that typically would have to pay?

“By far, the number one misconception about loaning out your vehicle is that if you let your neighbor borrow your car, an accident should go on his insurance because he was the one driving,” said Dave Freeman, vice president and regional underwriting officer at Erie Insurance. “But in private passenger auto insurance, the coverage typically follows the vehicle, not the driver.”

Let’s break it down.

DOES MY CAR INSURANCE COVER OTHER DRIVERS?

If you’re an ERIE customer, insured drivers include:

  • Resident relatives: Most ERIE personal auto policies provide coverage to the named insured, their spouse or domestic partner and any other resident relatives. So if someone is a member of your family and lives in your home, they’re automatically an insured under your policy unless excluded.
  • Domestic partners: If someone lives with you but isn’t a relative, they are not named insureds under your policy. However, if you’re living with a domestic partner, they can be added to your policy as a named insured but only if your relationship is the long-term, committed type – you share domestic responsibilities and have joint financial obligations. All you have to do is call your agent and let them know. They’ll send out a short driver questionnaire and check your partner’s driving record to determine eligibility.Related: What Insurance Do You Need When You Move in Together?
  • Someone with permissive use: If you loaned out your car to a friend or neighbor, your ERIE policy generally will cover them – as long as you gave your permission. If they are a regular and repeated user of the car, they should also have coverage. The only exception is if a driver has been specifically excluded on your policy.

Finally: If someone else is regularly driving your car, it’s important to let your agent know.

Chances are, anyone you let borrow your car will fall into one of these three categories. But just because someone is covered doesn’t mean loaning your car is risk-free.

LOANING YOUR CAR: CONSIDER THE PROS AND CONS

Here’s the good news: If the driver falls into one of the three categories above, and the loss is covered under the terms of your policy, your insurance can help pay for the damage – even if you weren’t the one driving.

But here’s the tricky part: Depending on the situation – and the specifics of your policy – you might get stuck paying a surcharge on your auto insurance premium for an at-fault accident, even if you weren’t the one driving at the time. (Every policy is different, so ask your ERIE agent if this applies to you.)

Related: What Determines the Price of My Auto Insurance?

According to Freeman, most people don’t think about these ‘what if’ scenarios before lending their car.

“When you loan someone your car, you’re putting your name out there as a responsible party,” he explains. “You’ll be protected within the limits of your auto policy, but there’s always a chance of something happening that exceeds them.”

For instance, if your neighbor runs a stop sign and causes significant injuries and property damage, you could be responsible for paying any amounts owed above the limits on your policy. That means you could be sued for your neighbor’s negligent actions because they were using your vehicle. Liability in these situations varies by state, so check with your ERIE agent if you have specific questions.

And then, there’s the question of what actually constitutes “permissive use.” For example, maybe your daughter goes off to college and lets her friend borrow a car that’s in your name – but you, as the named insured, didn’t give permission. Is her accident covered? The answer could vary based on case law in each state.

Related: Whose Insurance Pays When My Friend Crashes My Car?

If you do have to file a claim, rest easy. Your ERIE agent can help you understand the ins and outs of your policy, and our award-winning claims service gives you prompt and personal attention to get back to normal.

“At ERIE we look for a reason to pay a claim, not a reason to turn one down,” said Freeman. “We want to find a way to pay your claim if the coverage is available. After all, that’s why you bought a policy.”

So here’s the moral of the story: Always make sure you understand your liability before loaning out a vehicle.

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Auto Insurance Endorsements

Understanding Auto Insurance Endorsements

Auto Insurance EndorsementsThink of auto insurance endorsements as “added options” to your auto policy. Just like you could customize your vehicle, endorsements allow you to customize your coverage. Sometimes endorsements are as simple as an address or name change, or when you want to add coverage to your current policy.

An endorsement is also a good way to add extra coverage to your policy without having to purchase an entirely new one. Your ERIE agent can walk you through your policy and let you know which endorsements you currently have on your policy and if there are any additional endorsements that make sense to add.

Here are a few popular choices.

4 COMMON AUTO INSURANCE ENDORSEMENTS

  • Relax, you’re getting a rental: ERIE offers Transportation Expense coverage1 for customers who don’t have access to their vehicle for a particular time period due to a covered accident or other covered loss.

    Basic rental car coverage for a compact car due to a covered comprehensive coverage loss is automatically included in your auto policy in most states if you’ve purchased comprehensive coverage. However, if you need a larger vehicle or Transportation Expense coverage for a collision loss, there are options to buy additional coverage (With ERIE you can choose from six different classes of vehicle rentals, each with a corresponding premium rate).

    You can also purchase ERIE’s Roadside & Rentals bundle, which has options to include Roadside Service coverage2 along with Transportation Expense coverage.

  • Secure Your Rate: With the ERIE Rate Lock® feature, you can pay the same premium year after year. Even if you have a claim, your rates won’t change until you make certain changes to your auto insurance policy, such as adding or removing a vehicle or driver from your policy or changing your primary residence.3

  • Poof: Gone! The ERIE Auto Plus® endorsement includes Diminishing Deductible and extends limits to the basic auto policy. For around $30, you can cover all of the vehicles listed on your policy with higher limits to many of our “Xtra Protection Features.” And for each consecutive claims-free policy year (beginning when this endorsement is added), the deductible amount will be reduced by $100 up to a maximum reduction of $500. It also includes a $10,000 death benefit.4

  • True Blue Replacement: ERIE’s New Auto Security coverage endorsement5 offers customers the opportunity to replace a totaled vehicle without worry of depreciation. If your new car is less than two years old and it gets totaled, ERIE will reimburse you the cost to replace it with a vehicle of the newest model year. And if your car is more than two years old, ERIE will pay the cost to replace it with another vehicle of the same model up to two years newer with similar mileage. How nice is that?

When it comes to your auto insurance, you’ve got a lot of choices. When you choose ERIE, you can feel confident about your coverage. Why? Because every policy comes with a local insurance agent to help you understand how your policy works, what it can help protect, and how to customize it based on your needs (and budget).

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Duane Long - Monte Long

Duane Long + Monte Long

We provide Property, Casualty and Life insurance for personal and commercial needs.
Individual: Home, Auto, Life, etc. … Business, Prop., Casualty, WC, etc.

See https://www.facebook.com/DuaneLongInsurance/ for local news!

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Umbrella Policy

Why Should I Consider a Business Umbrella Policy?

As a proud business owner, it’s your job to consider the “what-ifs” for your business. Of course, you don’t want to think about the worst… but in order to be prepared, it’s a necessity. No matter how careful or cautious you and your employees are, accidents do happen – and sometimes they can be serious.

 

If you experience a catastrophic accident, things can get costly… and fast. That’s where your ERIE agent and ERIE’s Business Umbrella Policy can help.

 

Why Do I Need a Business Umbrella Policy?

This specialized policy can kick in with extra financial protection against a legal judgment for a covered loss. Business umbrella liability offers a cushion above and beyond the limits of your commercial general liability, professional liability, business auto liability and employer’s liability insurance.

 

Business umbrella insurance could help you when facing a serious and costly claim, for example:

 

  • One of your drivers causes a very serious accident and a suit is filed against your business.
  • A fire starts at your owned location and damages several other buildings in the surrounding area. A suit is filed against your business for the resulting damage.
  • Your business gets sued because a customer is injured by a product he or she purchased through your business.
  • A competitor claims you made false or malicious statements about their business in public or in an advertisement and decides to take legal action.

 

A major claim, like those mentioned above, could threaten the very existence of your business. And if a claim is serious enough, it could even have the potential to put your own personal assets — like your home and your retirement account — at risk.

 

What Erie Insurance Offers

ERIE’s Business Umbrella coverage offers your business $1 million or more of extra protection above your primary Erie Insurance policy’s liability coverage.

 

ERIE’s business policies also give you access to a variety of resources including:

  • Coverage for legal costs to defend a covered claim.
  • Assistance from a risk control consultant who can recommend measures to help you identify, manage and reduce your business’s risks (Learn more about our risk control services.)
  • Access to online disaster planning and business continuity tools through the Institute for Business and Home Safety’s “Open for Business” program.

 

Business umbrella insurance is probably more affordable thank you think.

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